WHAT IS BENEFIT-IN-KIND? The BIK on a company car relates to the private use of the car by the employee, the cash benefit is calculated from the original market value (OMV) of the car. Example: BIK tax liability in 2017/18 Just select your vehicle or enter the P11D value and BIK rate to calculate. Take a look at the BIK rates and how to calculate the company car tax for any vehicle. Table shows BIK rates for models registered from 6th April 2020, based on official WLTP CO2 figures. adsrc=adsrc+"setInterval(function(){googletag.pubads().refresh([slot1]);}, 120000);\n"; This company car tax table shows the BIK rate bands based on CO2 emissions. //adsrc=adsrc+"<"+"/script>" The BIK rate is multiplied by the P11D price of the car to derive the value of the annual taxable benefit. The BIK on a company car relates to the private use of the car by the employee, the cash benefit is calculated from the original market value (OMV) of the car. If you transfer the car to your employee, general BIK rules shall apply. In April 2020, the UK Government switched the CO2 figures used to calculate tax rates from the previous NEDC data set to WLTP. try Company Car Tax Benefit in Kind (BIK) Rates Table 2019/20 to 2020/21. Volvo’s exquisite XC40 SUV now has even more reason to be on your company car shopping list: the T5 Twin Engine PHEV model combines a 1.5-litre three-cylinder petrol engine with an 82hp electric motor to provide emissions of 47g/km and a BIK rate of 12% for 2020/21. Company Car Tax rules 2013-14 to 2019-20 Ready reckoner of appropriate percentage for calculating car benefit charge CO 2 emissions in grams per kilometre 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 ... iv Company car tax rates … Rates may go up or down over different tax years. Example: BIK tax liability in 2017/18 //googletag.defineSlot('/12319195/BC_surround_sky_left', [160, 600], 'div-gpt-ad-1355823612163-8').addService(googletag.pubads()); Get the latest fleet news and analysis, company car reviews, interviews and access to company car tax calculators, VED tables, car comparators, BiK tables a As an employee, you may receive a company car for personal use as a Benefit in Kind (non-cash value). To get the amount your company car will cost you in tax per year, you then multiply the BIK value by your income tax banding. Company car tax rates changed on 6 April 2020. BiK tax rates are still calculated from a car’s CO2 emissions, but for cars registered on or after 6 April 2020, they use figures from the more stringent WLTP testing regime, rather than … ", Claire Evans, head of fleet consultancy at Zenith, said: "It is a budget that helps the fleet industry transition to EVs, and realises the goal of making electric transport the new normal by 2030.". P11D Value. This section is only applicable where ownership of the car does not transfer to the employee. See seperate table for NEDC-derived CO2 BIK rates, for models registered before April 2020. //googletag.defineSlot('/12319195/BC_sidebar_half_page', [300, 600], 'div-gpt-ad-1355823612163-3').addService(googletag.pubads()); var googletag = googletag || {}; In other words, it’s a valuable perk over and above your salary, which is why you have to pay tax on it. For electric and plug-in hybrid cars, that doesn't matter too much, because 0g/km will still be 0g/km, and a lot of plug-in hybrids will still be below the 50g/km they need to qualify for the more favourable rates. The OMV is the list price of the vehicle including the VAT and VRT at time of first registration. Current company car BIK rates start at 22% for petrol and RDE2 compliant diesel cars, the rate increasing in up to 1% increments as CO2 bands rise, up to a maximum of 37%. Should the CO2 emissions of your company car fall between CO2 bandings, simply round the number down to work out the company car tax band that applies. Both will increase to 1% in 2021/22 and 2% in 2022/23. Read our guide to find out how much you'll pay All BIK rates apply to cars registered since 1998. Mercedes-Benz A-Class company car tax rates for 2020/21. Company Car BiK Tax Rates 2019-2025 Percentage Charge g/km CO2 Electric Miles 2020/21 2021/22 2022/23 2023/24* 2024/25* 0 NA 0 1 2 2 2 1 - 50 >130 2 2 2 2 2 ", ICFM chairman Paul Hollick agreed that the new rates could spell a revival for company cars: "With company car BIK tax rates now known for a full five-year vehicle cycle, which is the norm for some organisations, the Budget could even herald a resurgence of the company car," he said. All BIK rates will apply to cars registered from April 2020. Benefit in Kind tax, also known as BIK is the tax applied to benefits like a company car for the employee. //adsrc=adsrc+"googletag.cmd.push(function() { googletag.display('"+divid+"'); }); " Below is a list of currently available new models showing a starting rate for a 20% tax payer. ** Rate applies to diesel vehicles not meeting the RDE2 standard. By this point, you’re probably wondering if there are ways to reduce your BIK payments or company car tax. Abby Nuttall. Those cars will also continue to be taxed on their official NEDC CO2 output, rather than the newer and more accurate - but usually less favourable - WLTP figure. But while BiK rates apply every year for company car drivers, only the first year of road tax is linked to CO2 emissions, with a flat rate for following years. Simon Carr, chief commercial officer at Alphabet, said: “The announcement of 0% BIK tax rates for pure battery electric vehicles from April 2020 – followed by 1% in April 2021 and 2% in April 2022 – could see a renaissance for the company car and give us real momentum on the road to zero. For diesel-hybrids, the Non-RDE2 4% diesel surcharge does not apply. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. For the employee, the Benefit-in-Kind (BIK) is then taxed at the appropriate personal tax rate - usually collected through PAYE. Company car BIK rates 2020 - 2023 Current company car BIK rates start at 0% for pure-electric cars, 3% for new PHEV models, 21% for the greenest … Abby Nuttall. googletag.pubads().setTargeting("Page", "206215"); The incentive couldn’t be bigger. New rates. £20,000. Choose the car using the form below. So in this example: £35,465 x 32% = £11,348.80. Table shows BIK rates for models registered before 6th April 2020, based on official NEDC CO2 figures. Firstly, to reflect the benefit of you having an employer-provided car for your private use. Company car tax 2020/21 changes Electric and hybrid cars. The table below shows how the percentage BIK rates vary with vehicle CO2 and electric-only range. Updated for … Before we delve into the company car tax rates for 2018/19, here’s a quick refresher. An update to the benefit in kind (BiK) section showing the new rates announced. As such, there will be a change-over period where two different sets of BIK rates will be used - one for vehicles registered before 6th April 2020, and one for those registered after that date. Our simple, user-friendly Company Car Tax calculator allows you to compare all of the cars in the Vauxhall range including our low P11D models with cars from other manufacturers using independent … Start with your company car’s P11D value, e.g. var node = document.getElementsByTagName('script')[0]; Take a look at the BIK rates and how to calculate the company car tax for any vehicle. And then: BiK Value x Tax Rate = Annual Company Car / BIK Tax. Source: HMRC 2020. '//www.googletagservices.com/tag/js/gpt.js'; //adsrc="